PETRONAS has discovered two new offshore gas fields at the Central Luconia and Baram Delta fields off Miri, Sarawak Chief Minister Abang Johari Openg said today.

The national oil company informed the state government of the discovery, as required under the commercial settlement agreement (CSA) signed on December 7 last year to end the dispute over the state’s sales tax (SST) on petroleum products and the state’s oil mining law – the Oil Mining Ordinance, 1958.

Petronas had disputed Sarawak’s right to impose the SST and had argued that it had absolute monopoly of the state’s hydrocarbon resources under the Petroleum Development Act 1974.

Abang Johari did not give any further details of the new find except to say that “we (Sarawak) are going to do our part in the development of the areas”.

He was alluding to another point in the CSA that states Sarawak has the right to decide how newly discovered gas fields are to be developed.

Speaking to reporters after performing the earth-breaking for the RM848.7 million Batang Lupar 1 bridge in Sebuyau today, he said state oil company Petros would act for the state government in any talks with Petronas on developing the new fields.

Last month, Petronas had informed the state government of the discovery of the Lang Lebah-2 exploration appraisal well in Block SK410B in Central Luconia, and Dokong 1 in Block SK417.

The Lang Lebah-2 was discovered on February 10 while Dokong 1 was discovered on February 24.

Block SK410B is operated by PTTEP HK Offshore Ltd, KUFPEC Malaysia (SK-410B) Ltd and Petronas Carigali Sdn Bhd, a subsidiary of Petronas.

The Dokong-1 was discovered in the Block SK417 production sharing contract (PSC). – March 23, 2021.